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IFC Against AIDS Protecting People and Profitability

IFC Against AIDS Protecting People and Profitability. The HIV/AIDS epidemic. Number of adults and children living with HIV in 2003 (UNAIDS estimates). Eastern Europe & Central Asia 1.3 million [860 000 – 1.9 million]. Western Europe 580 000 [460 000 – 730 000]. North America

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IFC Against AIDS Protecting People and Profitability

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  1. IFC Against AIDS Protecting People and Profitability

  2. The HIV/AIDS epidemic Number of adults and children living with HIV in 2003 (UNAIDS estimates) Eastern Europe & Central Asia 1.3 million [860 000 – 1.9 million] Western Europe 580 000 [460 000 – 730 000] North America 1.0 million [520 000 – 1.6 million] East Asia 900 000 [450 000 – 1.5 million] North Africa & Middle East 480 000 [200 000 – 1.4 million] Caribbean 430 000 [270 000 – 760 000] South & South-East Asia 6.5 million [4.1 – 9.6 million] Latin America 1.6 million [1.2 – 2.1 million] Sub-Saharan Africa 25.0 million [23.1 – 27.9 million] Oceania 32 000 [21 000 – 46 000] Total: 38 million [35-42 million]

  3. Feminization of the epidemic • Since 1985, the percentage of women among adults living with HIV/AIDS has risen from 35 to 48 percent • Young women: 1.6 times more likely to be infected than young men • Sub-Saharan Africa: close to 60% of those infected are women, and 75% of young people infected are girls aged 15-24 • Caribbean: young women are 2.5 times more likely to be infected than young men

  4. Why IFC Takes AIDS Seriously • A priority for the development community • 95% of people infected live in developing countries • Most companies not aware of risks • Companies don’t know where to start • An integral part of IFC’s commitment to sustainable development

  5. The Business Case • Reputation risk • Financial impact • Threat to company’s viability

  6. The Reputation Risk

  7. AIDS: Impact On Bottom Line • Medical and other benefits costs • Absenteeism and lower productivity • Labor turnover, recruitment and training costs • Experienced personnel • Enabling environment • Shrinking markets

  8. Global Manufacturing and ServicesBenefits vs. Costs • A South African sugar mill found that HIV-positive employees took, on average, 55 additional sick days during the last two years of their lives, incurring economic costs of nearly 8,500 ($1,320) Rand per worker. Costs to the industry were projected to increase 10-fold in the next 6 years. Source: Morris et al. 2000 • DaimlerChrysler – South Africa estimated that averting one new HIV infection among its employees saves the equivalent of three to four annual salaries. Source: AmfAR - Treatment Insider Newsletter, January 2003

  9. SMEsViability • A study of 209 small businesses in South Africa identified HIV/AIDS as one of the three main factors that cause nearly 80% of South African start-up SMEs to fail every year (the other two factors are crime andinadequate management expertise) Source: Xinhua News Agency, 11 July 2001

  10. Vulnerability and risk factors • The company relies on a workforce separated from their families for long periods of time • Mining, construction, shipping, trucking, and other industries employing migrant labor • Employees’ salaries tend to be higher than in the surrounding community • The sector can be a target for activists • Extractive industries, companies with a strong brand name, companies sensitive on their “license to operate” • The company relies on key jobs/individuals • The loss of one of those key individuals can prove catastrophic • Large workforce / prevalence • The magnitude of direct and indirect costs will be stronger

  11. IFC Against AIDS Goal: Accelerate the involvement of private sector in fight against AIDS  Awareness  Guidance  Training  Financing

  12. What does the private sector bring? • Efficiency, skills and resources • Access to people and groups • Processes • Impact on stigma and discrimination • Partnership opportunities

  13. ODEBRECHT in Angola

  14. Program Implementation

  15. ODEBRECHT in Angola • Senior management engagement • Focal point • AIDS committees across operations • Awareness campaign • Education and training efforts • Prevention: STDs, peer education, condom distribution, VCT • Medical and counseling capacity • ARV Treatment

  16. ODEBRECHT in Angola - HIGHLIGHTS • Women health program • Outreach: • Reach to contractors • Reach to risk groups • Partnerships with municipalities for peer education • Partnerships with local NGOs for awareness, counseling and medical capacity • Estimated reach: 100,000 people • Post-conflict country

  17. “It is inevitable that a firm doing business in the developing world will pay for AIDS. It is just a question of when and how much.” Lee Smith Former President, Levi Strauss International

  18. IFC Against AIDS Sabine Durier - Program Leader Tel: (1-202) 473-4176, Email: sdurier@ifc.org Gillette Conner - Program Officer Tel: (1-202) 473-4040, Email: gconner@ifc.org Tish Enslin - Program Officer (South Africa Office) Tel: +27-11-731-3062, Email: LEnslin@ifc.org Vlassis Tigkarakis - Program AnalystTel: (1-202) 473-1394, Email: vtigkarakis@ifc.org http://www.ifc.org/ifcagainstaids

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